To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials.

Q: What does Preamble of To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials. do?

This bill proposes to amend the Internal Revenue Code of 1986. The proposed amendment aims to establish tax credits. These tax credits are intended for both the production of and investment in certain renewable materials.

Q: What does CREDIT FOR RENEWABLE MATERIALS PRODUCTION. of To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials. do?

This section amends the Internal Revenue Code of 1986 to establish a renewable materials production credit. The credit is calculated as 10 cents multiplied by the number of pounds of qualified renewable material produced and sold or used in a trade or business. Qualified renewable material is defined as the biobased carbon content portion of a product produced using various conversion methods from biomass. Certain products are excluded from the definition of qualified renewable material, including fuels, products used to generate heat or electricity, and products derived from non-U.S. biomass. The credit applies to facilities located in the United States or its possessions and has a 10-year qualifying credit period. A facility is ineligible if it is already receiving a renewable materials investment credit under section 48F. The credit is generally attributable to the person selling or using the qualified renewable material, but an election can be made to attribute it to the purchaser. The amount of the credit is limited to $10,000,000 per facility per year. The Secretary, in consultation with the Secretary of Agriculture, must establish regulations within 180 days of enactment. The amendments apply to qualified renewable material produced on or after the date of enactment.

Q: What does CREDIT FOR RENEWABLE MATERIALS INVESTMENT. of To amend the Internal Revenue Code of 1986 to establish tax credits for the production of, and investment in, certain renewable materials. do?

This section amends the Internal Revenue Code of 1986 to establish a renewable materials investment credit. The credit is equal to 30 percent of the qualified investment in a qualified facility. Qualified investment includes the basis of qualified property used in the production of qualified renewable material and part of a qualified facility. Qualified property is defined as tangible personal or other tangible property (excluding buildings) on which depreciation is allowable. A qualified facility is a renewable material production facility, excluding facilities for which a renewable materials production credit is already allowed. Certain progress expenditure rules and rules regarding tax-exempt bonds are made applicable. The credit is made transferable and is added to various sections of the code for conforming amendments. The Secretary is required to establish regulations for implementing the credit within 180 days of enactment. The amendments apply to property placed in service after the date of enactment.

Last updated: 3/27/2026 · Introduced: 3/27/2026

Author: Michelle Fischbach (R-MN)

TL;DR (AI)

This bill establishes a production tax credit of up to 10 cents per pound for qualified renewable materials produced and sold in the United States, with an annual limit of $10,000,000 per facility.
The bill creates a 30% investment tax credit for qualified facilities producing renewable materials, covering a portion of the investment in eligible property.
Both the production and investment credits are subject to specific definitions, exclusions, and regulatory requirements established by the Secretary of the Treasury, in consultation with the Secretary of Agriculture.

119th Congressin committeeOfficial page

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Includes provisions on preamble, credit for renewable materials production., and 1 more.

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